The U.S. Department of Agriculture announced the selection of Basin Electric Power Cooperative to receive a $204 million loan guarantee to support construction of a 150 megawatts (MW) wind farm in South Dakota.
The loan guarantee will provide financing for engineering, procurement,
construction, and commissioning of the PrairieWinds wind farm energy
project in central South Dakota.
In 2001, Basin Electric developed its first wind project–two turbines
just north of Chamberlain S.D., followed by another two turbines south
of Minot, N.D. Since then Basin Electric has developed more than 450 MW of power in the Dakotas, including several projects with
NextEra Energy Resources.
In 2009, Basin Electric subsidiary
PrairieWinds ND 1, Inc. completed the largest wind project in North
Dakota. That project has a capacity of 120 MW. When the South
Dakota project is completed, Basin Electric will have more than 700 MW of wind generation in its portfolio.
The South Dakota project is a model of public and private investment partnership. The Wind Partners announced in late September they had raised the $16.8 million required from South Dakota investors for their part of the project, along with 32 separate rural land owners who participated by providing lease easements. PrairieWinds will construct the turbines for the Wind Partners and operate them. Through PrairieWinds, Basin Electric will purchase the electricity produced.
A $204 million loan guarantee will be funded by USDA Rural Development’s Rural Utilities Service. The Loan Guarantee is for 60% of the total $340 million project costs. Funding is contingent upon meeting the conditions of the guaranteed loan agreement.
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